Correlation Between Adomos SA and Stradim Espace

Can any of the company-specific risk be diversified away by investing in both Adomos SA and Stradim Espace at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Adomos SA and Stradim Espace into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Adomos SA and Stradim Espace Finances, you can compare the effects of market volatilities on Adomos SA and Stradim Espace and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Adomos SA with a short position of Stradim Espace. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adomos SA and Stradim Espace.

Diversification Opportunities for Adomos SA and Stradim Espace

-0.9

Correlation Coefficient

Adomos SA  Stradim Espace

Pay attention - limited upside

The 3 months correlation between Adomos and Stradim is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Adomos SA and Stradim Espace Finances in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stradim Espace Finances and Adomos SA is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Adomos SA are associated (or correlated) with Stradim Espace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stradim Espace Finances has no effect on the direction of Adomos SA i.e., Adomos SA and Stradim Espace go up and down completely randomly.

Pair Corralation between Adomos SA and Stradim Espace

Assuming the 90 days trading horizon Adomos SA is expected to under-perform the Stradim Espace. In addition to that, Adomos SA is 1.13 times more volatile than Stradim Espace Finances. It trades about -0.34 of its total potential returns per unit of risk. Stradim Espace Finances is currently generating about 0.11 per unit of volatility. If you would invest  430.00  in Stradim Espace Finances on April 23, 2025 and sell it today you would earn a total of  170.00  from holding Stradim Espace Finances or generate 39.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Adomos SA  vs.  Stradim Espace Finances

Adomos SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Adomos SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in August 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Stradim Espace Finances

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Stradim Espace Finances are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Stradim Espace reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Adomos SA and Stradim Espace

The main advantage of trading using opposite Adomos SA and Stradim Espace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adomos SA position performs unexpectedly, Stradim Espace can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Stradim Espace will offset losses from the drop in Stradim Espace's long position.

The idea behind Adomos SA and Stradim Espace Finances pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.